The Business School and the Bottom Line Ken Starkey and Nick Tiratsoo Index More Information

Cambridge University Press 978-0-521-86511-1 - The Business School and the Bottom Line Ken Starkey and Nick Tiratsoo Index More information

Index

AACSB (American Assembly of Collegiate Africa, business education and management Schools of Business) 21 18, 19, 218 fostering diversity 40 agora (knowledge space), future model for history of 36–9 business schools 211–24 mission linked approach 41 AIESEC 33 AACSB International alumni networks 56–7 business doctorate figures 209 AMBA (Association of MBAs) 33 competitive advantage of accreditation 63 accredited business schools 39 current number of business programmes competitive advantage of accreditation 63 79 evaluation procedure 41–2 ethical and legal provision in curricula 80, history of 36, 37–9 81–2 influence on business school curricula influence on business school curricula 100–1 100–2 American business model (ABM), criticisms influence on research in business schools of 215 117 search for alternatives 215–19 list of accredited business schools 38 American business school model 8–10 relevance of business school research alternatives to 10 129 see also diffusion of the American model report on faculty salaries 51 American capitalism, fixation on short-term view on business school research 123 profit 9 ABS (Association of Business Schools) 33 American controversies over business Academy of Management 67, 123–4, 210–11 schools 20–3 accreditation Amos Tuck School of Business competitive advantage 63 Administration 104 ethical and legal provision in curricula 80, Ankers, Paul 127–8 81–2 Arnold, Matthew 191–2 history of 35–9 Ashridge 38, 39 accreditation institutions Asia, growth of business education 18–19 influence on business school curricula Aspen Institute 100–2 ‘alternative’ rankings 80 influence on research in business schools Beyond Grey Pinstripes initiative 80 117 ISIB student survey 106–7 accredited business schools 38–9 Association of Collegiate Business Schools battle for market share 37–9, 40–1 and Programs 41 enforcement of standards 41–2 Aston business school 38, 39 impact on standards 39–41 Attlee, Clement 27 rise of 36–9 Australia, MBA programmes and see also AACSB (International); AMBA; institutions 24 EFMD Australian GSM, increase in tuition fees accredited business schools 38–9 56

index 231

Babson College 104, 131 unique selling point 61–4 bachelor’s degrees in business, early use of alumni networks 56–7 development 16–17 Bush, George W. 1, 183 Bain, George 116 business ethics 81 see also curriculum Bain and Company, list of popular business developments; ethics tools 128 Business Graduates Association 33, 36 Barrett, Douglas 106 business gurus, business origins 124–6 Bates, Hilary 128 business ideas, sources of 124–6 Begg David 116 business programmes, number running 79 Bennis, Warren 205 business school education Beyond Grey Pinstripes initiative 80 developing concern with ethics 79–82 BGA see Business Graduates Association diversification of programmes 60–1 BI school, Oslo 62 fictional illustration of dilemmas 169–93 BIM (British Institute of Management) 25 effects of curriculum changes 77–8 Bok, Derek 208, 224 impetus for curriculum changes 77–8 Borges, Antonio 37 keeping curricula up to date 79 Borna, Shaheen 106 rates of curriculum revision 78–9 Brabston, Mary 106 social and environmental awareness 80 Bradford University School of Management tendency towards sameness 78 39 business school models see diffusion of the branding/rebranding of business schools American model 63–4 business school pedagogy Brennan, Ross 127–8 attitude towards the workforce 98–100 Bristol University 199 case study component 83–9 budget pressures on business schools 51–5 case study teaching method 89–100 competition from new providers 53 changes in philosophical approach 82 decline in demand for MBA programmes changes in teaching methods 82 52–3 changes in use of case studies 83–9 escalating faculty salaries 51 ‘corporate capture’ notion 102–4 financial uncertainty 51–2 curriculum inertia 100–9 geopolitical factors 53 devaluation of teaching 108 government cutbacks 51 ethical issues in case studies 97 government interference 52 influence of accreditation agencies loss of market share 53 100–2 reduced value of endowments 51 influence of student demands 105–7 reduced value of savings 51 lack of diversity in examples used 97 budget strategies for business schools managerial perspective 98 cost cutting/restraining 57 narrow frame of reference 97–8 diversification of business programmes neglect of contextual issues 99 60–1 partial and outmoded view of issues diversification of target student market 97–100 58–9 pressure from business interests 102–4 fund-raising 56–7 business school performance, establishment increase in donations 56 view 2–3 increases in tuition fees 55–6 business school rankings see published negotiation on annual tariff 57–8 rankings push for financial autonomy 57–8 business schools restructuring of MBA programmes 59–60 intensity of competition 1–2 role of the dean 55 reflection of corporate scandals 80 targeting overseas students 59 sphere of influence 1 targeting women students 58–9 see also rise of the business school

232 index

BusinessWeek classroom teaching methods 89–100 business experience of business school classroom teaching research report professors 131 90–100 business school curriculum changes evasion of awkward issues 98, 99 77–8 in British business schools 25 business school profiles 78–9 managerial perspective 98 business school rankings 54, 67–8 narrow frame of reference 97–8 list of best business books 128 neglect of contextual issues 99 top fifty MBA programmes 81 partial and outmoded view of issues business world changes, impacts on 97–100 business schools 9–10 teaching note 89, 90 treatment of ethical issues 97 Cambridge Judge 39 Cass Business School, London 39, 61–2, 116 Cambridge University, attitude towards Cavalle, Carlos 37 business education 28 Chalmers University 223 Canada, MBA programmes and institutions Chartered Management Institute, UK 206–7 24 China, growth of business education 18, 19, Carnegie Foundation 21 31–2, 201–2, 204, 218 case studies Cohen, Peter 105 and corporate scandals 103–4 competition among business schools 50–5 attitude towards the workforce 88–9 and escalating faculty salaries 51 conservatism 88–9 and the profusion of business schools 50 dated business assumptions 88–9 expanding recruitment sources 53 distributors 83 geopolitical factors 53 easyJet 84–5 influence of published rankings 54 Enron 103–4 pressures on business school budgets 51–5 Federal Express 87–8 web-based or distance learning courses 53 Harvard case study method 83 competition with business schools influence of the corporate sector 103–4 management consultancies 53 lack of context 85–7 new ‘for-profit’ providers 53 lack of hard supporting evidence 87–8 web-based or distance learning courses 53 lack of inquisitive intent 88 competition strategies lack of scepticism 88–9 accreditation 63 limited range of sources 84–5 attempts to influence rankings 67–70 Lufthansa 85–7 branding/rebranding 63–4 managerial perspective 87–8 building campuses abroad 59 neglect of wider factors 85–7 creation of a distinct identity 61–4 omission of issues that do not fit 87–8 data compilation and reporting issues partial and outmoded view of issues 67–70 97–100 distance learning 59–60 perspective on labour issues 87–8 diversification of business programmes predominance of management voices 60–1 84–5 executive MBA programmes 60 quality of research 84 focus on the bottom line 55–8 reliance on CEO observations 84–5, 88 gamesmanship 64–70 role in MBA curricula 83 generous appraisal procedures 64–7 subjectivity 84–5 image and positioning 61–4 value of distribution business 83 increased marketing effort 63–4 weaknesses in 84–9 lavish facilities 62–3 case study teaching method 9 more choice for students 59–61 attitude towards the workforce 98–100 new buildings and campuses 62–3

index 233

online delivery of programmes 59–60 developing concern with ethics 79–82 partnerships within the same field 63 effects of 77–8 playing the system/bending the rules impetus for 77–8 64–70 keeping up to date 79 press handouts and websites 62–3 rates of curriculum revision 78–9 restructuring of MBA programmes 59–60 social and environmental awareness 80 role of the dean 55 stakeholder management courses 81 target market diversification 58–9 see also business school pedagogy targeting overseas students 59 curriculum inertia targeting women students 58–9 devaluation of teaching 108 tighter focus of activities 61–2 in case study teaching 89–100 unique selling point 61–4 influence of accreditation agencies 100–2 consultants influence of student demands 105–7 competition with business schools 53 pressure from business interests 102–4 contribution to business ideas 130 reasons for 100–8 contextual issues, neglect in case study teaching 99 Daniel, Carter A. 16 contextualisation of knowledge 199–201 Darden 78 Corley, Kevin 68 Dartmouth 131 Cornell University Johnson Graduate Davenport, Thomas 124–6 School 69 De Tocqueville 192 corporate citizenship 81 see also curriculum dean, role of 55 developments DeAngelo, Harry 67 corporate scandals 4, 5–6, 80, 103–4 DeAngelo, Linda 67 corporate social responsibility courses 81 DeMott, Benjamin 172 see also curriculum developments Department of Trade and Industry, UK 221 Crainer, Stuart 60 diffusion of the American model 23–6 Cranfield 38, 39, 56 diffusion of the American model critical management studies (CMS) 218 (accelerators) 31– 5 criticisms of business schools 2–6 changes in the 1980s and 1990s 31–5 American controversies 20–3 commercial pressures on universities business school establishment view 2–3 32–3 corporate scandals reflect badly 4, 5–6 consultancy recruitment 34 devaluation of the MBA degree 5–6 financial services recruitment 34 dissatisfaction within faculty 6 globalisation 34 ethical concerns 3, 4 higher education system reforms 32 lack of evidence for value creation 4 improved business school recruitment no correlation between MBA and career 32–3 success 4 improved corporate attitudes 34 not delivering as claimed 4 legislation reforms 31–2 preoccupation with money 3 marketing of business schools 32–3 problems with donors 3 MBA attractiveness to students 35 propagation of morally unsound ideas 4 profitability of business courses 32–3 relevance of teaching to business life 4 promotion by pressure groups 33 research has little academic impact 4 diffusion of the American model (retardants) research has little impact on business 4 27–31 students’ concerns 6 anti-American feeling 27, 30–1 curriculum developments cultural incompatibility 28 business ethics courses 81 difficulty of creating new qualifications corporate citizenship courses 81 27–8 corporate social responsibility courses 81 doubts about American standards 31

234 index

diffusion of the American model (cont.) developing concern in business schools legal obstacles 27 79–82 obstacles in higher educational systems impact of corporate scandals 80 27–8 European Academy of Business in Society political obstacles 27 80 prejudice against business education 28–9 European Case Clearing House see ECCH scepticism of students 30–1 European Foundation for Management status anxieties 31 Development see EFMD distance learning courses 53 European Union, promotion of business donors, problems with 3 schools 18 Doriot, George 9 Evans, Fred 81 Drucker, Peter 22, 125 Evans, Reg 188 executive MBA programmes 60 easyJet, case study 84–5 ranking (Financial Times) 60 ECCH (European Case Clearing House) 83 experiments and innovations annual prizes for best-selling cases 83, alternatives to classical research model 84–8 145–65 The Economist collaborative research models 146–65 business school rankings 54 Financial Services Research Forum business school research 133 (FSRF), Nottingham University 147–65 Edinburgh Business School, Herriot-Watt Rady School of Management, San Diego University 60 141–5 EFMD (European Foundation for reassessment of the MBA 140–5 Management Development) 33 research forums 146–65 history of 37–9 EFMD (EQUIS arm) 37, 218 faculty of business schools accredited business schools 38–9 dissatisfaction within 6 competitive advantage of accreditation recruitment and pay levels 51 63 Federal Express, case study 87–8 ‘European values’ 40 Federation of British Industries, report on influence on business school curricula business education (1963) 29–30 100–1 fees see tuition fees influence on research in business schools Fenix programme 223 117 Financial Services Research Forum (FSRF), relevance of business school research 129 Nottingham University 147–65 Eliot, Charles W. 195 Financial Times Enron 4, 6, 80, 103–4, 214 business school curriculum changes 78 environmental awareness, in business business school rankings 54, 67–8 school programmes 80 ‘dumbing up’ of management theory environmental science 200 121–2 EQUIS (European Quality Improvement Executive MBA ranking 60 System) see EFMD (EQUIS arm) interview with retiring dean of Yale 129 Erasmus, increase in tuition fees 56 isolation of management teachers 123–4 ESADE 38, 56, 64, 131 report on faculty restructuring 116 ESCP 38 student surveys report 106 ESSEC 38 Fong, Christina 4, 128–9 Essen 56 Foppen, Wil 37 ethics, concerns about business schools 3, 4 ‘for-profit’ providers of business education ethics teaching 53 case studies’ treatment of ethical issues Forbes, business school rankings 54 97 Ford Foundation 17, 20, 23, 25, 28

index 235

Forster, E. M. 173 Gibbons, Michael 200-1 forums for research collaboration 146–65 Giddens, Anthony 10 France, business education 23, 24, 29, 33 Gioia, Dennis 68 fund-raising 56–7 Goleman, Daniel 125 Fuqua School, student surveys 106 Gordon, Robert Aaron 20 future of business schools government involvement, control of levels academic model 208–11 of fees in India 52 alternative models debate 204–11 The Great Gatsby (Fitzgerald) 189 alumnus income 202–3 American business model alternatives Haas School, increase in tuition fees 55 215–19 Haji-Ioannou, Stelios 85 American business school model Hambrick, David 123 alternatives 10 Hamel, Gary 125, 126 Americanisation question 8–10 Harvard Business Review 121–2, 126, 172, as agora (knowledge space) 211–24 205 business doctorates 209 Harvard Business School 1, 3, 183, 224 changes in knowledge production case study method 9, 83, 90 199–201 distribution of case studies 83 changing role of the university 197–9 establishment of 195 commercial pressures 7–8 Enron case studies 103–4 contextualisation of knowledge 199–201 mission 195 continuation of the current system overseas partnerships 18 201–4 Harvard University 208 contribution of the arts and humanities Haskins, Mark 78 218–19 HEC Paris 38, 131 cost structure constraints 203 Heller, Joseph 172 effects of negative perceptions 203–4 Helsinki School of Economics and Business impacts of business world changes 9–10 Administration 38, 56 long-term viability concerns 195–6 Henley Management College 38, 39, 60 MBA demand saturation point 201–2 Herberger, Roy 37 possible demise 203–4 Hopwood, Anthony 121 possible future scenarios 201–24 Howell, James Edwin 20 power issues 207–8 Humboldt, William von 196–7 problem of deﬁnition of purpose 207 Hutton, Will 10 professional model (closer link with management) 204–8 identity of business schools 61–4 range of pressures 7–10 IEDC-Bled School of Management, Slovakia relationship with universities 7–8 63 ‘responsive’ PhD programmes 222 IESE (Spain) 37, 131 image and positioning 61–4 Garten, Jeffrey E. 78, 129 imaginary MBA class, ﬁctional illustration Gekko, Gordon see Wall Street (Oliver of dilemmas 169–93 Stone) IMD 38, 87–8, 131 geopolitical factors, effects on business Imperial College London, business school 3, school budgets 53 57, 116 Georgetown Business School 131 Indian business schools 201–2, 204, 218 Germany government control of fees 52 attitudes towards business education 29 status and ‘babuism’ 31 changes to higher education system 32 innovations see experiments and response to the American model 23, 24 innovations Ghoshal, Sumantra 4, 85–7 INSEAD 9, 37, 38, 57

236 index

Institute for Enterprise and Innovation, Management Today 134 Nottingham 222 Marcal, Leah 81 International Herald Tribune, business March, Jim 216 school rankings 54 Marconi 80 International Journal of Operations and Mark, J. Paul 90 Production Management 128 marketing of business schools 63–4 Italy, US business education initiatives 23–5 branding/rebranding 63–4 diversification of target student market Jacobs, Irwin 143 58–9 Japan press handouts and websites 62–3 attitudes towards business education 28–9 marketplace ethic in business schools 7–8 business school teaching in English 33 Marx, Karl 190 changes to postgraduate education system Massachusetts Institute of Technology 32 216–17 lifetime employment system 28–9 Master of Business Administration degree response to the American model 23, 24 see MBA degree Japanese MBA graduates, problems in the master’s degrees in business, early old system 34 development 16–17 Journal of Operations Management 128 Matten, Dirk 81 Mays Business School, ranking 69–70 Kay, John 215 MBA (Master of Business Administration) Kellaway, Lucy 121–2 degree Kerr, Clark 197 concerns about declining value 78 Kirp, David 7 devaluation of 5–6 Knights, David 147–50, 158 faked degrees 42 knowledge, contextualisation 199–201 influence of 1 knowledge production, changes in 199–201 lack of correlation with career success Kriel, Lomi 69–70 4 Kristeva, Julia 220 negative views of MBAs 106 Krooss, Herman 22 MBA programmes Kumar, Nirmalya 84–5 arduous reputation 105 competitive restructuring 59–60 Lancaster University Management School decline in demand for 52–3 39, 57 demand saturation point 201–2 Langfed, Claus 122 distance learning 59–60 league tables see published rankings diversification of target student market Leavitt, Harold 106 58–9 Lewis, Michael 128 early development of master’s degrees in Linux 184–5 business 16–17 Lodge, David 173 experiments and innovations 140–5 Loftuss, Maria 143–4 factors affecting demand 52–3 Logue, Denis 51–2 fictional illustration of dilemmas 169–93 London Business School 4, 26, 38, 39, 77, imaginary MBA class 169–93 116, 125, 131 institutions delivering MBAs (selected appraisal procedures 65 countries) 24 proportion of overseas students 59 online delivery 59–60 Lufthansa, case study 85–7 reorientation towards business needs Lyotard, Jean-François 198 140–5 shorter timescale 60 management consultancies, education standards issues 64–7 programmes 53 tailored for executives 60

index 237

MBA students Queen Mary College, University of London concerns 6 140–1 ethical concerns 106–7 evolving view of business 106–7 Rady, Ernest 144 influence on curricula 105–7 Rady School of Management, San Diego social responsibility 106–7 141–5 McGill University 4, 56 RAE see Research Assessment Exercise McKibbin, Lawrence 21, 36, 39, 79, 115–16 rankings see published rankings Miller, Patrick 32–3 Readings, Bill 198 Mintzberg, Henry 4, 5 Research Assessment Exercise (RAE) 117, Money, Arthur 32–3 118, 119, 120, 126–7, 133–5 money preoccupation, criticism of business research forums 146–65 schools 3 research in business schools Moon, Jeremy 81 business experience of professors 130–1 business school cultural prejudices 130–5 neoliberal free market model, criticisms of capital asset pricing model 127 215 comparison with consultants 130 Nepal, growth of business education 19 domination of US journals 122–3 New York Times, business school curricula drivers behind shift towards 116–17 79 effects of the ‘academic’ research model Notre Dame 131 130–5 Nottingham University Business School engagement with outside organisations (NUBS), FSRF 147–65 126–7 Nussbaum, Martha 219 evaluation of quality 119–23 evaluation of relevance to end users 123–9 O’Toole, James 205 faculty restructuring exercises 116 Open University 39, 60, 141, 222 financial benefits 116, 117 Opus Dei 18 impacts of audit and ranking 121–2, 133–5 overseas campuses 59 impacts of RAE (Research Assessment overseas students, targeting by business Exercise) 117, 118, 119, 120, 133–5 schools 59 increase in number of journals 118 increasing rate of production 118 partnerships, within the business school influence of accreditation agencies 117 field 63 lack of academic impact 4 Paul Merage School of Business, increase in lack of impact on business 4 tuition fees 55 lack of influence 127–9 Pearce, Jone 67, 211 link to grant allocation 117 Penrose, Edith 126 origins of business ideas 124–6 Pfeffer, Jeffrey 4, 5, 128–9, 174 preoccupation with publication 115–19 Porter, Lyman 21, 36, 39, 79, 115–16 priority over teaching 115 Porter, Michael 184, 193 reasons for limited relevance 129–35 Prahalad, C. K. 126 rise of research 115–19 press handouts 62–3 specialist rankings and league tables Price College of Business, University of 116–17 Oklahoma 51–2 UK government involvement 117 Prusak, Laurence 124–6 US domination of judgements of validity published rankings 122–3 attempts to influence 67–70 research models, alternatives to the business schools’ research contribution classical model 145–65 117 researching business schools, challenges influence of 54 11–12

238 index

Riesman, David 30 Tanaka, Gary 3, 57 Rigby, Darrell 128 teaching see business school pedagogy rise of the business school Thunderbird Business School 38–9 American controversies 20–3 Tokyo University 28 eastern Europe 19 Toronto Business School 131 global spread 18–19 Torvalds, Linus 185 growth in the US 15–17 Trilling, Lionel 173, 191 origins 15 Trump, Donald 60 spread of American inﬂuence 19 TrumpU 60 spread to Europe 17–18 tuition fees United Kingdom 25–6 government control in India 52 see also diffusion of the American model increases in 55–6 Rochester Business School 131 Tweedale, Geoffrey 215 Rogers, Brian 84–5 Tyson, Laura D’Andrea 77 Ross, Stephen M. 56 Rotterdam School of Management 37, 38 UCLA 131 Russia, MBA programmes and institutions UCSD (University of California, San Diego) 24 7, 141–5, 222 UK Said Business School, Oxford 121, 222 attitudes towards business education 29 SDA Bocconi 38, 56 controversies over business schools 25–6 Senge, Peter 125, 216–17 response to the American model 24, 25–6 Shank, John 104 UK government, knowledge initiatives Singapore, growth of business education 19 221–2 Skapinker, Michael 6, 123–4 UK Treasury, published business school Slack, Nigel 128 rankings 54 Smith, Frederick W. 87–8 UNC Chapel-Hill 131 social awareness, in business school unique selling point 61–4 programmes 80 universities Society for Organizational Learning (SoL) emergence of modern form 196–7 216–17 impacts of commercial pressures 7–8 Southern California Business School 131 increasing pressures on 197–9 Spain, MBA programmes and institutions 24 loss of raison d’être 197–9 St Gallen, Switzerland 62 requirement to justify contribution 197–9 stakeholder management 81 see also tension between research and professional curriculum developments training 197 Stallman, Richard 185 University of Bath School of Management standards of MBA programmes, issues 64–7 82 Stanford 3, 4, 31, 131, 216 University of Houston Victoria, School of Stearns, James 106 Business Administration 63 Stockholm School of Economics 223 University of Kansas 81 Stone, Oliver (Wall Street) 169, 170, 175–9, University of Leeds Business School 39, 219 127 discussion 179–93 University of Luton 66 Strathclyde Business School 38, 39 University of Manchester Institute of students see MBA students Science and Technology (UMIST) Sugar, Sir Alan 34 147–50 Sullivan, Robert 141–5 University of Michigan Business School 56 Swanson, Diane 81 University of Newcastle Graduate School, Sweden, Universum Communications Australia 66–7 student survey 106 University of Texas at Austin 131, 222

index 239

University of Texas School of Management, Walton Family Foundation 102–3 ranking of schools’ research Warrington Business School 38–9 contribution 117 Warwick University Business School 38, 39, US, MBA programmes and institutions 58 (January 2006) 24 Washburn, Jennifer 208 US News and World Report, business Washington University, St Louis 122 school rankings 54, 69–70 web-based courses 53 Weber, Max 169–70, 179, 190 value creation in business schools 4 websites as marketing tools 62–3 Vanderbilt Business School 131 Wharton School 15 Virginia Business School 131 Whyte, William 30 Williams, Robert 106 Waite, Nigel 150–3, 157, 163 women, targeting by business schools 58–9 Wal-Mart 79, 102–3 Wall Street (Oliver Stone) 169, 170, 175–9, Yale 78, 129, 131 219 Yeates, W. B. 192 discussion 179–93 Wall Street Journal, business school Zimmerman, Jerold 67 rankings 54 Zuboff, Shoshana 172